North Carolina Down Payment Support Systems

Payments Gateway - These systems will be the Mortgage Credit Certificate and also the Down Payment Assistance Program.

Should you meet the requirements for one of those plans and also you buy a house and December 1, 2009, it is also possible to be eligible for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a home in the past three years. That is the exact same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and moderate incomes.

If you are eligible for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your federal income taxes. You are able to save as much as .

You may be able to unite this should you qualify for 2009, for the MCC. This might reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your income as well as the cost of the house you are purchasing. Household income means the “gross income of the mortgagor and any other man expected to live in the residence who's 18 years old or older.”

The income and house price limits that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Persons $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New Home $220,000 Existing Residence $210,000

Home buyers that want help with their down payment and closing costs may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer only needs to pay and the load would pay up to .

This program has more rigorous income limitations than the MCC program outlined above. Like the MCC program, it can be utilized in conjunction with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, nonetheless, can't be employed along with all the MCC. It is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Persons $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Residence $210,000